New car registrations across the European Union increased by 4% in the first quarter of 2026, with March delivering particularly strong momentum. The growth reflects renewed consumer demand, supported by updated tax incentives and subsidy programs across key European markets.
Electrified vehicles continue to reshape the region’s automotive landscape. Hybrid-electric models remain the top choice among buyers, while battery-electric vehicles (BEVs) significantly expanded their share. At the same time, plug-in hybrids gained traction, reinforcing the role of multiple technologies in Europe’s transition to lower emissions.
Electrified Vehicles Take the Lead
Battery-electric cars accounted for 19.4% of all new EU registrations in Q1 2026, a notable rise from 15.2% in the same period last year. A total of 546,937 BEVs were registered, highlighting sustained demand despite varying national performance.
Growth across Europe’s largest EV markets was uneven but overall positive. Italy posted a remarkable 65.7% increase, followed by France at 50.4% and Germany at 41.3%. Belgium, however, recorded a slight decline of 2.3%, showing that adoption trends remain market-specific.
Hybrid-electric vehicles strengthened their dominant position, capturing 38.6% of the market with over 1.08 million units registered. Strong growth in Italy and Spain, along with steady gains in Germany and France, ensured hybrids maintained their lead as the most popular powertrain in the EU.
Plug-in hybrid electric vehicles (PHEVs) also delivered solid growth. Registrations reached 268,344 units, pushing their market share to 9.5%, up from 7.6% a year earlier. Demand surged in Italy and Spain, while Germany contributed consistent gains, signaling renewed interest in PHEVs as a transitional technology.
Petrol and Diesel Continue to Lose Ground
Traditional internal combustion engine vehicles saw continued declines across the board. Petrol car registrations dropped by 18.2% year-over-year, with all major EU markets experiencing double-digit decreases. France recorded the steepest fall at over 40%, followed by Italy, Spain, and Germany.
Petrol’s market share fell to 22.6%, down from 28.7% in Q1 2025. Diesel vehicles also continued their long-term decline, with registrations decreasing by 15.7%. Diesel now accounts for just 7.7% of new car sales in the EU.
Combined, petrol and diesel vehicles represented 30.3% of the market, a sharp drop from 38.2% one year earlier. The shift underscores the accelerating transition toward electrified mobility across Europe.
Outlook: A Technology-Neutral Transition
The Q1 2026 results highlight a clear direction for the European automotive market. Electrified vehicles—led by hybrids and supported by growing BEV and PHEV adoption—are steadily replacing traditional powertrains.
While battery-electric vehicles continue to gain share, the strong performance of hybrids and plug-in hybrids suggests that consumers are embracing a range of electrification options. With supportive policies and incentives still evolving, Europe’s path toward decarbonisation remains firmly on track, driven by a diverse mix of technologies.
[source: ACEA]
